DREAM / The Prime Minister resigns and wakes up under the Parisian bridge!

 Kliko këtu për të tjera
Voxpress:

The government plans to reduce debt by 6.5% by 2026! 'Finance': We orient borrowing in the domestic market

2022-08-14 16:01:17Biznes SHKRUAR NGA REDAKSIA VOX

The government plans to reduce debt by 6.5% by 2026! 'Finance': We

Rising interest rates due to normalisation of monetary policies by the European Central Bank, the Bank of Albania and other central banks, as well as exchange rate fluctuations, could censor the government's goal of lowering public debt in the country.

In the medium-term debt management strategy for the period 2022-2026, debt is said to be down 6.5% by 2025, falling to 66.7% of GDP, down from 73.2% at the end of 2021. All these predictions say the Finance Ministry is subject to revision, as the situation is presented uncertain due to the Russia-Ukraine war, which has hit European markets and economies.

According to an analysis done in the strategy, it is said that if rates rise simultaneously debt interest could rise by up to 0.8% in the medium term, while a strong depreciation of the local currency against the euro could keep the debt level above 70% by 2026.

These risks may also make it difficult to borrow Albania in the foreign market under conditions when financing needs, expenses as a result of prices and for the re-financing of existing debt have increased. For this reason, the Finance Ministry says the target of borrowing will be the internal market, as borrowing in the foreign market is a challenge.

"The internal market will continue to remain the main source of financing, which will cover most of the central government's borrowing needs. The main instruments that will be used to secure funding are state titles" said in the medium-term strategy.

According to Finance Ministry data, the country's public debt in June was 11.6 billion euros, where 5.7 billion is foreign debt and 5.9 billion euros are from the internal market. This exposure of currency debt makes the portfolio even more sensitive to exchange rate shocks./Shqiptarja.com


Në përputhje me standarded JTI

Video

SHIKO KANALIN NE YOUTUBE
×